Using plastic for slates is coming

Related tags Drinks Credit card Payment Personal identification number

News that I will have to remember all my PIN numbers without fail by next year has put me in a state of panic. But it has also reminded me how much...

News that I will have to remember all my PIN numbers without fail by next year has put me in a state of panic. But it has also reminded me how much we now rely on plastic to make purchases, even in the pub.

Many readers have assumed, or have been told, any form of credit for drinks is illegal, under the terms of the Licensing Act 1964. In fact, the wording in the section of the Act is more specific. It states the drinks must be paid for at the time when they are sold or supplied.

This effectively prevents the old practice of 'the slate', where customers were enabled to accumulate debts with the licensee by obtaining drinks without payment.

Of course, payment by credit card has been widely used in the restaurant and hotel trades for many years. This is because it is not illegal to pay for drinks after they have been 'sold or supplied', if the payment is made in respect of a meal to which the drinks were ancillary, or in respect of hotel accommodation, where drinks and others services have been added to the total bill.

However, in the case of drinks alone, the payment rule still stands. It effectively prevents a person paying for a drinks party on licensed premises by asking for the bill to be sent on. If the law is strictly interpreted, such a party would need a cash bar, rather than a mere record of drinks supplied, with a bill rendered afterwards. This latter practice, although widely used, does not comply strictly with the wording of the current Act.

The matter of credit cards and their legality in this context depends on the construction put upon the words 'paid for'. In my view, the drinks become 'paid for' when the card transaction is accomplished, in the same way any other goods become 'paid for' in a shop, supermarket or travel agent. The mere fact payment is subsequently demanded by the card operating company for a number of transactions does not, it seems to me, make the sale of drinks a 'credit sale' in such circumstances.

However, there is one bit of good news in the immediate future. The argument will become somewhat academic in late November, because the new Licensing Act does not contain the same prohibition in any shape or form. The method of payment - or the use of the slate - is therefore up to the seller.

Related topics Training

Property of the week

Follow us

Pub Trade Guides

View more